Independent Bank (IBCP) versus Its Peers Critical Survey

Independent Bank (NASDAQ:IBCP) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Independent Bank to related companies based on the strength of its analyst recommendations, earnings, risk, institutional ownership, profitability, dividends and valuation.

Profitability

This table compares Independent Bank and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independent Bank	21.63%	14.14%	1.30%
Independent Bank Competitors	15.63%	9.41%	0.93%

Earnings and Valuation

This table compares Independent Bank and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Independent Bank	$315.38 million	$68.54 million	10.81
Independent Bank Competitors	$63.01 billion	$2.42 billion	21.36

Independent Bank’s rivals have higher revenue and earnings than Independent Bank. Independent Bank is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

79.4% of Independent Bank shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 5.9% of Independent Bank shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Independent Bank has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Independent Bank’s rivals have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Dividends

Independent Bank pays an annual dividend of $1.12 per share and has a dividend yield of 3.0%. Independent Bank pays out 32.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Independent Bank has raised its dividend for 11 consecutive years. Independent Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Independent Bank and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independent Bank	0	2	3	0	2.60
Independent Bank Competitors	7494	30253	27859	1490	2.35

Independent Bank currently has a consensus target price of $41.00, suggesting a potential upside of 11.59%. As a group, “Banks” companies have a potential upside of 14.25%. Given Independent Bank’s rivals higher probable upside, analysts clearly believe Independent Bank has less favorable growth aspects than its rivals.

Summary

Independent Bank rivals beat Independent Bank on 8 of the 15 factors compared.

Independent Bank Company Profile

Independent Bank Corporation is a bank holding company that provides financial services through its subsidiary, Independent Bank. The company serves individuals, families and businesses, primarily in Michigan. Its offerings include personal and business checking and savings accounts, consumer and commercial lending, mortgage services, and digital banking. Business customers can also access services such as cash management and other treasury solutions. Independent Bank operates as a community-focused bank, combining branch-based service with online and mobile banking.